Based on the information presented by Trading Platforms, mobile or digital wallet payment has been the most used point of sale (POS) payment system globally, i.e. a 21.5% market share in 2020. By 2024, mobile wallets are set to become even more popular, making one-third of all POS transactions globally.
The global change towards a cashless society produced a massive area for mobile wallets as a more secure and convenient means of managing cash. On the other hand, the whole sector prospered amid the Covid-19 outbreak as people began questioning the security of utilizing banknotes for fear of transmitting the virus.
Throughout the past few decades, mobile payment solutions contributed to millions of individuals easy access to digital transactions, particularly within underbanked markets in Africa, Asia and Latin America. But they also become quite popular with tech-savvy customers in developed nations.
The digital transformation of the global payments industry, fuelled by the COVID-19, directed to the remarkable rise of the mobile wallets market. Over the previous two years, the trade value of the entire sector climbed and is expected to hit almost $2.5 Trillion in 2021. The number of individuals using cellular wallets to make payments jumped from approximately 900 Million to 1.48 Billion during this period.
In 2020, 25.7% of all POS payments were created using mobile wallets, as mentioned in the Global Payments Report 2021. From 2024, this figure is expected to increase by 33.4%.
The poll also revealed that mobile payments created 44.5% of all eCommerce transactions the past year, twice greater than credit cards and three times greater than debit card payments.
Credit cards and debit cards are expected to maintain the same market share in the next two decades, making around 22% of POS payments per year. But, money transactions are set to see a substantial fall, falling from 20.5% in 2020 to 12.7% in 2024.
Mobile Wallets to eventually become a $4 Trillion Industry by 2024
The Statista data revealed that mobile payments are predicted to continue booming in the subsequent years, both regarding users and trade value. In 2021, 1.48 Billion globally are expected to utilize mobile payments solutions, making a $2.48 Trillion trade worth. In the subsequent three decades, cellular wallets will turn into a $4trn value industry with almost 1.8 billion users globally.
Typically, the mobile wallets marketplace is dominated by Asian countries, as indicated by China the international leader. As stated by the Statista poll, the trade value of the Chinese mobile payments market is forecast to reach $1.3 Trillion in 2021. From 2024, this figure is set to leap to over $1.8 Trillion, or 45% of all mobile wallet payments worldwide.
Western nations are far behind concerning the use, with many individuals still preferring money, credit, and debit cards. The US ranks as the worlds mobile payments market, with a $468 Billion value of trades or almost three times less than China. But, statistics reveal the US marketplace is set to see remarkable growth in the subsequent years, with trade value growing by 80% to $840.7bn in 2024.
The United Kingdom is the third-largest mobile wallets market worldwide, anticipated to reach $97.6 Billion trade value in 2021, a 43% growth annually. By 2024, mobile POS payments from the nation are expected to rise by another 92% and reach a $187.7 Billion value.